Chris sounds like the type of person whose net worth affords him to take a 30% loss on his house; or keep and enjoy the house long enough for the market to come back.
Most people who buy middle to upper middle class houses put everything they have in their homes. Those people won’t easily weather a 30% downturn.
Personally, I’d rather not take a loss on my house and spend that money on my own personal enjoyment (vacations, etc..), save it, or give it to charity. Why give it to the previous seller? To me, part of the enjoyment of a home is feeling confident I got a great deal.
For example, when you go to foreign countries where bargaining is common place, you might feel “ripped-off” if a vendor sells you some jewelry for 5 times the local price. It’s not a big deal because as a rich American, the cost is still less than what you’d pay at the mall at home. You can very well afford it but knowing you were “ripped-off” still takes away from your enjoyment. It’s just human nature to want a fair, if not great, deal.
How do you feel if you buy a plane ticket for $1,500 and your seat mate only paid $500? It’s all a question of timing (suppose it’s your own money and not the corporation’s money).
